Clarification on Tax Liability under RCM in case of Services Provided by One Registered GTA to Another Registered GTA, Goods and Services Tax - GST

[DIVYESH GANDHI]

We seek your clarification on the applicability of GST under the Reverse Charge Mechanism (RCM) in the following scenario:

1. GTA-1 is a GST-registered Goods Transport Agency (GTA) that has opted to pay GST under RCM, and issues a consignment note.

2. GTA-2 is also a GST-registered GTA, which has likewise opted to discharge GST under RCM, and also issues a consignment note to the end customer.

3. GTA-1 provides goods transportation service to GTA-2, and thereafter GTA-2 supplies the same transportation service to the end customer (e.g., manufacturer, body corporate, etc.), who falls under the specified category liable under RCM.

Posts / Replies

[Shilpi Jain]

Generally there can be only one consignment note issued for one transaction. See whether the arrangement between GTA-1 and GTA 2 can be that of leasing / renting of vehicle?

[KASTURI SETHI]

Is GTA-2  not playing the role of intermediary service ?  Any agreement between both GTAs ?